"As you know some states have already taken measures to try and contribute to lifting wages in the sector, and we've spoken to each of the state governments to seek their cooperation and hopefully have them join us in the submissions," he said.

"We do need to understand what the states and territories are going to do, otherwise we could lead to a situation where organisations have workers with the same qualifications, giving a similar service, are actually… receiving different levels of funding to pay those workers," she said.

"This is leadership from the Commonwealth Government. I don't know if competition is the best way to get state governments to equal the Commonwealth Government or whether the best way is just getting people to work together."

Modest start

But there are already signs of tension on that front.

NSW Community Services Minister Pru Goward has told State Parliament the Commonwealth's $2 billion commitment may not be enough.

"A very modest start on what that share really is at a time of very difficult budget circumstances, bequeathed by Labor, we cannot be expected to shoulder this burden alone," she said.

"Taxpayers, courtesy of the NSW Government, will need to find hundreds of millions of dollars to fund our share of this case - and the question is from where?

"The Commonwealth has to do better than flap around with $2 billion.

"It needs to give its detail on where and how much they will truly contribute to meeting their fare share."

The Victorian Government says it has already committed $200 million over four years to boost pay for community sector workers, although unions argue that is not enough.

And even if all the states match the Commonwealth's offer, community organisations will have to reach into their own pockets to increase pay for staff who are not working on government programs.

Federal Liberal Senator Michaelia Cash says that could be difficult.

"What we don't want to see is community sector organisations having to cut services; having to actually lay people off and make them redundant, the adverse effects that may well flow from a full-bench decision in relation to the equal remuneration case," she said.

"I would rather see women in work than women not in work."

The case will return to Fair Work Australia at the end of the month.

Interactive chart: Male vs female earnings over time

Slide left and right to view changes in the data over time.Click anywhere to lock or unlock.